Breach of Contract

The relatively recent case of Education 4 Ayrshire Ltd v South Ayrshire Council [2009] CSOH 146, CA37/09, concerns the issue of what happens when a contract clearly provides how and when a notice of delay or claims should be given but the parties do not follow the precise form of the notice provisions.

A good theoretical decision in favour of pacta sunt servanda and adherence to what the parties have agreed strictly, it has to be wondered whether this is the right practical decision given that effectively notice, albeit in a different form, had been given. Certainly, I have seen this decision take effect on elements of a recent multimillion pound NPD project, which may have delayed the deal.

The case serves as an important lesson for contractors, not just those involved in PPP / PFI, to take special notice of notice requirements under contracts.